Mortgage Calculator Canada
Enter the home price, your down payment, the interest rate and the amortization: you'll see the monthly payment, the total interest and the gross income the stress test requires. Open «More options» to test prepayments.
More options
General values (Canada). They don't account for regional rules or other costs that may apply. Check them with your lender or advisor.
Rate discounts for bank products
Enter the rate above with every discount applied. Here, each product the bank asks for: how much it lowers the rate and what it costs a year. The discount is assumed to last the whole term.
—
Count as cost what you pay extra for having it with the bank: if the same insurance costs $150 elsewhere and the bank's costs $250, that's $100. If the premium rises over the years, as life insurance does, enter the average.
Enter the price, down payment, interest rate and term.
The payment is principal plus interest: it doesn't include mortgage insurance, property taxes or heating.
Yearly amortization schedule
Enter the price, down payment, interest rate and term.
Results are estimates. Solvemis accepts no responsibility for the results obtained or for how they are used. Always double-check the result and talk to a qualified professional before making decisions.
Solvemis is free, with no sign-up. If it helped and you’d like to support the project: Buy me a coffee
How it works
How to use it
- Enter the home price and your down payment.
- Add the annual interest rate and the amortization in years.
- Open «More options» to change the payment type or closing costs, or to add a prepayment.
- Check the monthly payment, the total interest, the cash needed at closing and the yearly schedule.
How it is calculated
The annual rate is converted to a monthly rate with semi-annual compounding, (1 + rate/2)^(1/6) − 1, and the loan is simulated month by month. If the rate changes after some years, the payment is recalculated in the year it changes, on the outstanding balance and the months left. Prepayments are applied at the end of the chosen year. The income needed tests the payment at the higher of the rate plus 2 points or 5.25%. Closing costs, the GDS ratio and loan-to-value are general values for Canada that you can change. With rate discounts, the rate you enter is the one you pay with every product; without each one, the rate goes up by its discount (also after a rate change) and the extra interest is compared with its cost over the years the mortgage lasts.
Payment = L · i / (1 − (1 + i)^−n) · i = (1 + rate/2)^(1/6) − 1, n = months
Sources
- Interest Act (R.S.C., 1985, c. I-15), section 6 — Justice Laws Website, Government of Canada
- Mortgage stress tests and household financial resilience under monetary policy tightening — Bank of Canada
- The Canadian Mortgage Stress Test In 2026 — Loans Canada
About this calculator
Semi-annual compounding
Canadian fixed-rate mortgages quote an annual rate compounded twice a year, so the monthly rate is slightly lower than the annual rate divided by 12. At 5%, it’s 0.4124% a month instead of 0.4167%. A $400,000 mortgage over 25 years therefore costs $2,326.42 a month. The chart shows each year’s interest in blue.
Prepayments: shorter amortization or lower payment
When you prepay, you choose what goes down. Shortening the amortization keeps the payment and pays the mortgage off sooner, which usually saves the most interest. Lowering the payment keeps the amortization. Most mortgages allow a yearly prepayment without penalty up to a limit set in your contract.
What the values for Canada don’t cover
The stress test qualifies you at the higher of your rate plus 2 points or 5.25%, and lenders generally cap your housing costs (GDS) at 39% of gross income and total debt (TDS) at 44%. GDS includes property taxes and heating, which this calculator leaves out, so your real limit can be lower. An 80% loan-to-value avoids mortgage default insurance; with less than 20% down you can buy with as little as 5% down on the first $500,000, paying an insurance premium. Closing costs, including land transfer tax that varies by province, legal fees and inspections, are set here at a general 3%: check them with your lender or broker.
Frequently asked questions
Why is my Canadian payment different from a US calculator?
Because fixed-rate mortgages in Canada compound interest semi-annually, not monthly, as the Interest Act requires lenders to state. At 5% over 25 years, $400,000 costs $2,326.42 a month here, a little less than with monthly compounding.
What is the stress test?
Federally regulated lenders must qualify you at the higher of your contract rate plus 2 percentage points or 5.25%. The calculator shows the gross income you need for the payment at that rate to be 39% of your income.
What does the payment not include?
Only principal and interest. Mortgage default insurance (if your down payment is under 20%), property taxes, heating and condo fees come on top; property taxes and heating also count towards the lender's GDS ratio.
Is it worth taking the bank's products to get a lower rate?
It depends on what they cost. Under «Rate discounts for bank products», in «More options», enter the discounted rate (with every product) as the interest rate and, for each product, such as insurance, a card or having your salary paid into the account, how much it lowers the rate and what it costs a year. You'll see how much interest each one saves and whether it's worth it; if you don't know the cost, how much it could cost a year and still pay off. Count as cost only what you pay extra for having it with the bank: if the same insurance is cheaper elsewhere, the difference.
Updated October 20, 2026
Missing something in this tool, or a tool we don't have? Write to us